Wednesday, December 21, 2011

See What’s Changed When Customers Return

The same bank is held up by the same robber five days in a row. The same police officer interviews the bank staff after the robbery each of the days. Arriving this fifth day, the officer says to the staff, “Look, at this point, I’ve gotten a really thorough description of the guy who’s doing this. I’ve talked to you four times already. But on the off chance you’ve something to add, I’ll ask if there is anything more you can tell me about what this robber looks like.”
     “Well,” says one of the tellers, “I have noticed that each time he comes in now, he’s a little better dressed than the last time.”
     Each time one of your repeat customers comes in, do you and your staff notice what’s new with the customer? If the customer doesn’t show you or tell you, do you ask? Do you make a mental note about changes soon after the customer arrives at your store so that you’ll remember the changes better? If you think the person would like you to notice the changes, do you comment on them?
     The bank robber in that story probably wouldn’t want bank staff commenting on his improving sartorial state. But bank staff wouldn’t want him coming back repeatedly anyway. When you do want the customer to return, the comment on what’s different makes the customer feel important. It also helps you keep your impressions of the shopper up-to-date so purchase recommendations you make are more accurate.
     People who know you care will come in again to your store sooner and more frequently. Coming in often increases the likelihood the shopper will have family or friends along. The shopping is combined with socializing. And somebody shopping with a group tends to spend more. Customers are more willing to tolerate the inevitable nuisances of shopping when they are with a group. This “misery loves company” effect has been noted by social psychologists at Vanderbilt University.
     According to University of Pittsburgh and Baylor University research, more than 75% of shoppers plan to make purchases beyond what they came in for. However, there is a limit for each shopping trip. The more shopping trips, the more often the customer stumbles across needs they’d forgotten to include on their shopping list and items they didn’t realize they wanted until the items were in front of them or in their hands.

Click below for more:
Habituate Customers to Quick Return Trips

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